The chief executives of government-controlled mortgage-finance
firms Fannie Mae and Freddie Mac will get multimillion-dollar
paydays thanks to a massive raise approved by the companies'
regulator.
In separate filings with the Securities and Exchange Commission
on Wednesday, Fannie Mae and Freddie Mac disclosed that their
respective CEOs, Timothy J. Mayopoulos and Donald Layton, would
have a total target compensation of $4 million each, effective
Wednesday.
The salaries of Messrs. Mayopoulos and Layton had been capped at
$600,000 for the past two years. News of the compensation review
was reported earlier this year.
In granting the pay increase, Federal Housing Finance Agency
Director Mel Watt defied the White House and some lawmakers who
said the raises weren't appropriate for companies still backstopped
by taxpayers.
Some also see the increases as a symbolic victory for proponents
of keeping Fannie and Freddie entrenched in the mortgage market as
housing-finance overhaul efforts stay dormant.
Write to Joe Light at joe.light@wsj.com
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